A major 25-year contract that will see FCC Environment treat up to 155,000 tonnes of residual waste per year on behalf of two Scottish councils has been formally signed today (6 October).
FCC and Zero Waste: Edinburgh and Midlothian – a joint venture between the City of Edinburgh and Midlothian council – formally sealed the arrangement at the CMS LLP offices in Edinburgh.
The 25-year contract, worth an estimated £450 million over its lifetime, will also see FCC design, build and operate the 14MW Millerhill Recycling and Energy Recovery Centre in Midlothian.
Expected to begin operations in May 2019, the plant will be capable of processing 190,000 tonnes of waste and will also take in around 20,000 tonnes of refuse from local commercial sources. All waste will be mechanically pre-treated in order to separate additional recyclables.
The contract includes a 31-month construction period for the – after which the 25-year disposal period will commence.
Bidder
FCC was appointed preferred bidder for the contract in December 2014, with the plant receiving planning consent from Midlothian council in September last year.
Edinburgh council has previously confirmed it will be providing an estimated £27 million capital contribution for the project, joined by £6.8 million from Midlothian. The councils claim that the revenue cost of funding the borrowing will be offset by the reduction in spend on landfill.
The Green Investment Bank has meanwhile today committed £28 million to the build of the plant, which becomes its 18th investment north of the border.
Commenting on the signing, Paul Taylor, FCC chief executive, said: “The Millerhill Recycling and Energy Recovery Centre will play a significant role in improving recycling and reducing the amount of waste being sent to landfill throughout Edinburgh and Midlothian.
“The project is part of the commitment of both the City of Edinburgh and Midlothian Councils to achieve these goals, and helps support the Scottish Government’s Zero Waste Plan.”
‘Progress’
Councillor Lesley Hinds, Environment Convener for the City of Edinburgh council, said: “I am pleased that FCC will now be able to begin work on this state-of-the-art facility. In Edinburgh we have made great progress to increase the amount of waste we recycle and this new facility will provide a sustainable way of disposing of any waste that can’t be recycled by using it as an energy source for locally-generated heat and power.
“The procurement of this project is an example of successful partnership working between the two councils, and will benefit both Edinburgh and Midlothian’s zero waste strategies over the coming years.”
Councillor Jim Bryant, the Cabinet Member for Economic Development at Midlothian council, added: “This is another exciting milestone in an innovative project that will turn a derelict, brownfield site into an energy production centre.
“This represents another sizeable infrastructure investment in the Shawfair area. In addition to increasing recycling rates, the plant will produce electricity for the National Grid.”
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Source: letsrecycle.com Waste Managment